New Build Investor Guide – Tower Hamlets

Apr 2021

Buying a new build property off plan? Check out our Area Guide first

Are you considering purchasing a new build, off plan property in Tower Hamlets, London? Want to get the latest information on house prices, demographics, new build property in the area and other useful information before you commit to a deal?

Our Area Guides give you the latest relevant information from local governments, the Census and the Office of National Statistics (ONS) data. They’re designed for offshore, new build property investors looking to buy in London, to help you understand an area in detail so you can make informed investment decisions.

Read on to find out more about Tower Hamlets, London. If it’s information about the wider UK property market you need, you can download our latest report here. In our report we address two key questions:

1 Is investing in UK residential property still worth it?
2 If so, where are the best opportunities for property investors and why?

Tower Hamlets, London

The London Borough of Tower Hamlets is a London borough located in East London; it covers much of the traditional East End. The borough lies adjacent to the eastern side of the City of London and on the north bank of the River Thames. It includes much of the redeveloped Docklands, including West India Docks and Canary Wharf.

Tower Hamlets is a popular location for new build investors buying off plan and is home to schemes including London Dock, South Quay Plaza, The Silk District, Goodluck Hope and One Park Drive to name just a few. This report provides investors with detailed demographic data, economic and employment details and house price data for some of the most popular new build schemes in Tower Hamlets. We also provide the average rents being achieved in the borough, so that you can make informed investment decisions.

The Tower of London

Demographics

The population of Tower Hamlets is forecast to grow by nearly 20% by 2030.

Population 317,203
Forecast Population 2030 380,598

Source: data.london.gov.uk

Economically Active Population

Age Range Percentage of Population
16-64 75%
Under 15 19%
Over 65 6%
Marital Status  
Single 55%

Source: nomisweb.co.uk

Average Life Expectancy

Average life expectancy for those born in Tower Hamlets between 2016 and 2018:

Males 79 years
Females 83 years

Source. ons.gov.uk

Population Density

Tower Hamlets is the most densely populated area in the UK, with an estimated 16,427 people per km2 in 2019.

Source: ons.gov.uk

International Migration

In 2018-2019 12,568 new residents from overseas moved to Tower Hamlets.

Source: ons.gov.uk

Country of Birth

Location of Birth Percentage of Population
UK & Ireland 58%
EU 9%
Other Countries 33%

Source: data.london.gov.uk

Crime and Safety

Just over 32,000 crimes were committed in Tower Hamlet’s in the year to September 2020 – the 6th highest of all London boroughs.

Source: ons.gov.uk

Education

Schools

Primary Schools 84 (23 of which have the highest Ofsted rating ‘Outstanding’)
Secondary Schools 32 (10 of which have the highest Ofsted rating ‘Outstanding’)
Schools and Colleges (16-18 years) 26 (11 of which have the highest Ofsted rating ‘Outstanding’)

Source: compare-school-performance.service.gov.uk

Universities

Queen Mary University of London
London Metropolitan University
UCL School of Management

Health Facilities & Wellbeing

Hospitals

The Royal London Hospital
BMI The London Independent Hospital
Mile End Hospital
The Tower Hamlets Centre for Mental Health

General Wellbeing

Population considering themselves in very good health 50.6%
Population considering themselves in very bad health 1.6%

Employment & Economy

Employed population aged 16-64 62% (compared to London 74% and England 75%)
Unemployed population aged 16-64 10%

Source: data.london.gov.uk

Top 4 Sectors of Employment

Finance, banking and insurance 34%
Public administration, education and health 19%
Distribution, hotels and restaurants 18%
Transport and communication 15%

Source: data.london.gov.uk

Local Employers

There are numerous ‘global’ brands with offices in Tower Hamlets. To name just a few:

Barclays Citigroup Clifford Chance Credit Swiss
Infosys Fitch Ratings HSBC J.P Morgan
KPMG MetLife Morgan Stanley RBC
Skadden State Street Thomson Reuters

Jobs & Job Density

Median Gross annual Pay (full time employee jobs) (2017) £37,603
Number of jobs in Tower Hamlets 342,000
Jobs per resident 1.43

Source. nomisweb.co.uk and data.london.gov.uk

Housing and Property

Number of residential properties in Tower Hamlets 125,360
People per dwelling 2.52

Source: data.london.gov.uk

Property Ownership (2018)

Own property outright (no mortgage) 19%
Own property with mortgage 12%
Rent from a Housing Authority or the Local Authority 31%
Rent from private landlord 38%

Source: data.london.gov.uk

Household Composition

One Person households 35%
One family households 44%
Others (sharers etc) 22%

Source: nomisweb.gov.uk

House Prices

House prices in Tower Hamlets are the third cheapest of all Inner London boroughs (only Lewisham and Greenwich have cheaper average prices).

Average achieved price January 2020 £462,297
Average achieved price January 2021 £457,731
Difference -1%

Source: london.gov.uk

How many sales?

During the COVID pandemic, the volume of house sales in the borough fell by nearly 34% (the third highest decline of all London local authorities behind the City of London and Newham).

Number of residential sales to year ending September 2019 3,363
Number of residential sales to year ending September 2020 2,221

Source. ons.gov.uk

Rent

Mean monthly average rents in Tower Hamlets (January to December 2020).

Studio £1,350 per calendar month
1 bedrooms £1,453 per calendar month
2 bedrooms £1,750 per calendar month
3 bedrooms £2,230 per calendar month

Source: london.gov.uk

Major New Build Developments in Tower Hamlets

Tower Hamlets is a popular location for new build off plan, offshore investors. Canary Wharf is located within the borough, the City of London is on it’s doorstep and the new Crossrail station in Whitechapel have all been key drivers for this.

But buying new build off plan property can mean it’s more difficult to obtain data as to what’s really going on in the market. In this next section we’ve tried to capture information you will find useful, including average house prices and an indication of the sales taking place so that as an investor you can get a better understanding of the new build housing market in Tower Hamlets.

One Park Drive (Canary Wharf Group)

Total Number of Apartments 483
First Launched May 2017

Visit website

Average Asking Prices – One Park Drive

  Minimum Average Maximum
Price £625,000 £1,335,096 £3,900,000
Price per ft2 £1,077 £1,394 £2,016
Area (ft2) 435 961 2,064

Source: Molior

  Minimum Average Maximum
Studio £692,000 £678,571 £715,000
1 bedroom £990,000 £882,895 £997,500
2 bedroom £2,020,000 £1,422,105 £2,750,000
3 bedroom £3,900,000 £2,152,321 £4,320,000

Source: Molior

London Dock (St George)

Total Number of Apartments 1,800 (1,314 private apartments)
First Launched September 2014

Visit website

Average Asking Prices – London Dock

  Minimum Average Maximum
Price £825,000 £1,738,810 £5,499,500
Price per ft2 £1,128 £1,545 £1,900
Area (ft2) 550 1,184 2,894

Source: Molior

  Minimum Average Maximum
1 bedroom £825,000 £843,770 £869,950
2 bedroom £989,950 £1,281,005 £1,519,000
3 bedroom £1,324,950 £2,466,587 £5,499,500

Source: Molior

The Silk District (Mount Anvil)

Total Number of Apartments 698 (515 private apartments)
First Launched April 2018

Visit website

  Minimum Average Maximum
Price £445,000 £714,500 £1,466,500
Price per ft2 £534 £909 £1,382
Area (ft2) 418 851 2,709

Source: Molior

  Minimum Average Maximum
Studio £455,000 £497,800 £577,500
1 bedroom £503,500 £561,859 £613,500
2 bedroom £680,000 £746,017 £944,500
3 bedroom £825,000 £1,021,063 £1,466,500

Source: Molior

South Quay Plaza (Berkeley)

Total Number of Apartments 888 (700 private apartments)
First Launched July 2015

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  Minimum Average Maximum
Price £685,000 £1,106,680 £2,160,000
Price per ft2 £1,063 £1,394 £1,748
Area (ft2) 486 809 1,236

Source: Molior

  Minimum Average Maximum
Studio £685,000 £761,357 £820,000
1 bedroom £695,000 £925,513 £1,075,000
2 bedroom £965,000 £1,223,280 £1,555,000
3 bedroom £1,297,500 £1,693,300 £2,160,000

Source: Molior

Goodluck Hope (Ballymore)

Total Number of Apartments 804 (651 private apartments)
First Launched June 2017

Visit Website

  Minimum Average Maximum
Price £399,000 £749,529 £1,850,000
Price per ft2 £702 £952 £1,257
Area (ft2) 402 798 1,734

Source: Molior

  Minimum Average Maximum
Studio £399,000 £455,000 £474,000
1 bedroom £493,000 £546,147 £653,500
2 bedroom £544,000 £799,676 £1,105,000
3 bedroom £1,050,000 £1,332,042 £1,850,000

Source: Molior

Environment & Leisure

Tower Hamlets is home to some of London’s most famous landmarks including:

Tower of London

Tower Bridge

Royal Mint

London’s East End

Transport

London’s travel network spans Zones 1 and 2.

Overground and Rail Stations

Bethnal Green

Cambridge Heath

Hackney Wick

Limehouse

Shadwell

Shoreditch High Street

Wapping

Whitechapel

Underground and DLR

Bow Road Bromley-by-Bow Canary Wharf
Crossharbour Devons Road East India
Heron Quays Island Gardens Langdon Park
Limehouse Mile End Mudchute
Poplar Shadwell South Quay
Stepney Green Tower Gateway Tower Hill
West India Quay Westferry Whitechapel

Governance

Labour Party

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